Volkswagen AG expects the Chinese auto market to grow at a slower pace of five percent in 2017, the German automaker's China chief said on Thursday, as tax incentives for small-engined cars are rolled back.
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Volkswagen's prediction, made by its China Chief Executive Jochem Heizmann, is the same as China's automakers association, which said earlier this month it expects vehicle sales to grow 5 percent this year.
China's auto market, the world's largest, got a shot in the arm after the government cut taxes on cars with engines of 1.6 liters or below in late 2015, helping lift vehicle sales to 13.7 percent growth last year.
(Reporting by Jake Spring; Writing by Brenda Goh; Editing by Jacqueline Wong)